USDCAD: Bearish retracement to 1.3185?
Last Thursday’s signals were not triggered, as there was no bullish price action when the price reached 1.3266 and 1.3250.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be entered prior to 5pm New York time today.
Long Trade Ideas
Go long after the next bullish price action rejection following the next touch of 1.3185, 1.3151, or 1.3120.
Put the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade Ideas
Go short after the next bearish price action rejection following the next touch of 1.3272 or 1.3345.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
USD/CAD Analysis
I wrote last Thursday that the Canadian Dollar was in more focus as it looked like the weakest major currency. I thought that it made sense to look mostly towards the bullish side, so I was prepared to take a bullish bias at a firm bullish bounce from any support level.
We got no such bounces at any of the support level. The price continued to fall against my expectations without finding any support and is now almost back at the key level at 1.3185 which has held as support for a while. The bullish trend is barely present, and this trend looks extremely weak, so I really have no directional bias. The only opportunity I see here which may set up is due to the reliability of the support level at 1.3185, so a solid bullish bounce at a touch of this level could provide a long trade entry and I would take a bullish bias upon this scenario playing out.
There is nothing of high importance due today concerning either the CAD or the USD.